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Research
Sustainability Reporting - The Indian Business Case 2007
With India emerging as an economic giant amidst the Asian economies and the burgeoning globalization, Sustainability Reporting is emerging as a business case for Indian and transnational companies with operations in India. Gradually some Indian companies are recognizing the challenge of going global and are bracing themselves to keep up the competition in the international markets with respect to voluntary reporting initiatives becoming market-based instruments. CII-ITC Centre of Excellence for Sustainable Development thus conducted a study to generate awareness of Sustainability Reporting in India. The study aims to identify the drivers for the Indian companies to go in for reporting and the benefits derived by them. The study also aims to promote the implementation of sustainability best practices in Indian businesses. Towards this end, a desk review was conducted for 80 Indian companies from various sectors. This was followed by a detailed questionnaire surveys and telephonic discussions conducted with 25 companies. The study establishes that Sustainability Reporting is an emerging concept in India and its adoption is still low as compared to many developed nations. The study reflects the growing importance within the business community of corporate responsibility as both the key indicator of non-financial performance, as well as a driver of financial performance. It also reflects the responsibility that business has to be transparent and accountable not just to shareholders but also to the wider community and the environment. Sustainability - Driver for Innovation and Profit The business sector is set to play an increasingly important role in the global quest for sustainable development in the future. There exists a major requirement for the exploration of new and innovative solutions that can provide welfare without a high level of natural resource consumption. Addressing this requirement will call for approaches that look beyond incremental change and encourage companies to cooperate in the formulation of the type of incentives required to ensure this transition. India historically possesses a tradition of innovation contributing to significant changes, not the least seen in the area of information technology. The country also possesses a young population capable of challenging existing ideas and participating in global discussions regarding sustainable development. English skills are in abundant supply, allowing the creation of companies in the growing service sector that cater to clients all over the world. Although a large proportion of the Indian population live in poverty, the country also possesses a rapidly growing middle class and a very influential group of wealthy industrialists. Taken together, this situation makes India's domestic challenges very similar to global sustainability challenges, implying that business solutions which are successfully implemented in India are also likely to be successful in other developing countries. The objective of this initiative driven by WWF India and CII is to, in association with Indian companies; develop roadmaps which explore innovations that can move society to a point beyond incremental improvements in sustainability. The outcomes of the initiative should be practical tools that can be used both to develop new goods and services and to highlight the barriers that exist for companies to move towards sustainability. A report will be developed, based on cases in India, for "sustainability as a driver for innovation and profit" is presented. Illustrative List of Companies Assisted by CII for Design and Implementation of Corporate Sustainability
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